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Accounting is an exact science. When managers process good news about the company (that is information that will increase the stock price), they have an

Accounting is an exact science. When managers process good news about the company (that is information that will increase the stock price), they have an incentive to disclose the information as soon as possible. When managers process bad news about the company (that is information that will decrease the stock price), they have an incentive to delay disclosure as long as possible

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